Distribution and Transmission

Our four distribution subsidiaries provide power to about 14 million customers in the states of Bahia, Pernambuco and Rio Grande do Norte, and part of the states of Paraíba (one municipality), São Paulo (223 municipalities) and Mato Grosso do Sul (five municipalities), covering a population of more than 34 million people (base date dec/ 18).

We also operate in the transmission of electric power, which includes the operation and maintenance of transmission lines and substations with a voltage equal to or greater than 230 kV and which are part of SIN – National Interconnected System. The remuneration of these assets is made through an Permitted Annual Revenue Permitted (PAR) established by ANEEL and the result of the Transmission Auctions, which are paid by all SIN users, both generation and cargo. Currently, 679 km of transmission lines and 11 transmission substations located in the states of Bahia, Paraíba and Rio Grande do Norte are operating through Afluente T, Narandiba and Potiguar Sul. With the incorporation of Elektro Holding, on August 24, 2017, we added 578 km of new transmission lines to our electric grid and 10 transmission substations, one owned and nine shared, located in the states of Mato Grosso do Sul, São Paulo , Santa Catarina and Ceará, and which were sold at the Transmission Auction held by ANEEL in April 2017. In 2017, Neoenergia was once again winner in Auction n. 002/2017 -ANEEL when it acquired two new concessions – Lots 4 and 6 – of electric power transmission, which together comprise 4 transmission lines (1,074 km) and 6 substations, one owned and five shared, located in the States of Tocantins, Piauí, Bahia, Ceará and Paraíba.

In December 2018, at Auction n. 004/2018-ANEEL, in another successful participation Neoenergia won 4 new lots (1, 2, 3 and 14) corresponding to 3,000 km of future circuits, 5 new substations and 16 extensions. Thus, among assets in operation and under construction, we have a total portfolio of 5,332 km of transmission lines and 49 transmission substations. Consolidating, therefore, the auctions that took place in 2017 and 2018, Neoenergia obtained an additional 4,653 km in transmission lines, R$ 788 million in PAR and R$ 8.8 billion in CAPEX (ANEEL), considering the historical amounts involved.

In the Auction for the Concession of Transmission Public Service of electric power  No. 02/2019 – held on December 19, 2019 – Neoenergia won lot 9, located in Bahia, which comprises 1 transmission line of 210 km  and 2 substations. The maximum limit for the construction of the works is 48 months from the signing of the respective contracts, which will take place within the deadlines set in the notice. The total capex estimated by the regulator (Aneel) for the lots sold is around R$ 303 million. The total Allowed Annual Revenue (RAP) of the new projects is R$ 18 million.